What is Helium and What is HNT?

Helium has gained attention as one of the leading decentralized wireless networks, aiming to create a global, peer-to-peer network for IoT devices. Powered by its native token HNT, Helium represents a bold attempt to build infrastructure without relying on traditional telecom companies.

Read More: How to Buy Helium (HNT)

Key Takeaways

• Helium is a decentralized wireless network for Internet of Things (IoT) devices.
  
   
• HNT is the native token used for rewarding network participants and securing the system.
  
   
• Helium’s network is built by users who deploy hotspots and earn HNT tokens in return.

What is Helium?

Helium is a blockchain-powered wireless network that allows IoT devices to connect to the internet without using centralized cellular networks or Wi-Fi providers.

Instead of building towers or fiber networks, Helium relies on individuals to set up hotspots — small hardware devices that provide wireless coverage. These hotspots create a network that IoT devices (such as smart sensors, pet trackers, or environmental monitors) can use to send small amounts of data across long distances.

The concept is called the “People’s Network” because anyone can participate by running a hotspot and helping grow the network’s coverage.

What is HNT?

HNT is the native cryptocurrency of the Helium network.
It serves several important functions:

• Rewards: Hotspot operators earn HNT by providing network coverage and transferring device data.
  
   
• Staking: Validators must stake HNT to help secure and validate transactions on the Helium blockchain.
  
   
• Burn and Mint Mechanism: Data Credits (used by devices to transmit data) are created by burning HNT, balancing token supply with network usage.

In simple terms, HNT incentivizes users to expand and maintain the network, while providing a financial model that aligns with actual usage of the wireless service.

Read More: Helium(HNT) Price Today

How Helium Works

Helium operates through two main components:

• Proof-of-Coverage (PoC): A consensus algorithm that verifies that hotspots are honestly providing wireless coverage in specific locations.
  
   
• Data Transfer: Hotspots earn HNT not just for coverage, but also for actually transferring IoT device data across the network.

This design ensures that rewards are tied to real-world usage and not just idle participation.

Recent Developments

• Migration to Solana: In 2023, Helium completed its migration from its original blockchain to the Solana network, aiming for faster transaction speeds and broader interoperability.
  
   
• Expansion into 5G: Beyond IoT, Helium has expanded into decentralized 5G mobile networks through Helium Mobile, offering new opportunities for the network and HNT holders.

These steps aim to position Helium as not just an IoT network, but a broader decentralized wireless infrastructure project.

Frequently Asked Questions (FAQs)

What devices can use the Helium network?

Devices that require low-power, long-range wireless connectivity — like GPS trackers, agricultural sensors, and smart city monitors.

Is it profitable to run a Helium hotspot?

Profitability depends on location, network demand, and how much data your hotspot transfers. Densely covered areas may see lower rewards due to competition.

What was the reason behind Helium’s migration to Solana?

Helium moved to Solana to take advantage of faster transaction speeds, lower costs, and better developer tooling.